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With regard to your second question, I really do not believe that a government as substantial as the Chinese Government are going to be influenced by questions of soft loans on their policy towards Hong Kong. Hong Kong for China, as for Britain, as for Hong Kong, is a fundamental issue in its own right and I am sure that the proper approach is not to try to link Hong Kong with other matters. There are lots of other matters which we will no doubt be discussing but I do not believe in linkage of that kind, nor do I think it would impress my Chinese colleagues in the way that your question implied. I think we have to concentrate on the fundamental question: that China shares with Hong Kong and with Britain a desire to see Hong Kong's success continue; what are the necessary ingredients that will maintain confidence and that will maintain Hong Kong's prosperity and identity. That is the mature argument, that is the mature discussion that needs to take place, and that is the one most likely to influence Chinese opinion.
Question: Foreign Secretary, you said yesterday in LegCo that it was a matter of judgment as to the consequences for Hong Kong of any plans China might or might not have for changing institutions which have been set up under British rule. I'm wondering what in your judgment would be the consequences should those changes take place?
Mr Rifkind: I believe it will be deeply disappointing and a considerable cause of serious concern if institutions which have been established and which are based on democratic legitimacy were dismantled. I cannot see any advantage to the objectives that China herself has set of a successful, confident Hong Kong continuing in the years to come, I cannot see any advantage from the dismantling of institutions that have been established and I very much hope that point will be taken into account before any irreversible actions are taken.
Question: It would be a cause of serious concern. I mean not a major earthquake though?
Mr Rifkind: Well, I'm not wanting to try to limit the damage that would be caused. These again, as I say, are judgmental matters; we cannot be certain. And it would very
1 much, I suppose, be influenced by what China's alternative proposals added up to; how representative they were seen to be; to the extent to which any proposals that China might have were to take into account the views of the people of Hong Kong. These are important questions which at the moment must be speculative. What is quite clear is that the dismantling of the institutions that have been established would be damaging and could be extremely damaging. The extent of that damage would depend upon what alternatives China was proposing and how representative and democratic these were seen to be by the people of Hong Kong and by the world as a whole.